The retail industry, a prime target for cyberattacks, faced 24% of all such attacks, more than any other sector, with 629 confirmed incidents and 241 breaches in 2022 alone.
Moreover, the average cost of a data breach in retail soared to $3.28 million.
To bring clarity to the magnitude and implications of these cyber threats, I’d like to share the most important retail cybersecurity statistics that are crucial to note immediately. 🌐💳🔒
Retail Cybersecurity Statistics: The Key Data
- 24% of all cyberattacks, more than any other industry, were directed at retailers.
- The retail industry experienced 629 confirmed incidents and 241 breaches in 2022.
- In retail, the average cost of a data breach in 2022 was $3.28 million.
- Sales growth drops 5.4 percent for compromised retail companies.
- 50% of retail cyberattack victims were extorted, and 25% had their credentials harvested.
- 45% of retailers reported an increase in the volume, severity, or scope of cyberattacks in 2021/22.
- 77% of retail businesses were attacked by ransomware in 2021, an increase from 44% in 2020.
- 98% of the 629 incidents in the retail sector involved a financial motive.
- 89% of retailers affected by ransomware reported revenue or business losses.
- Nearly 20% of customers say they will stop purchasing from companies that have been hacked.
Sources: (Fortinet, CSO Online, WWD, NBER, Arctic Wolf, ISA Cybersecurity, Trend Micro, Security Magazine, Virtual Armour.)
Learn More: Retail Data
Table of Contents
Retailers Targeted: 24% of Cyber Attacks Focus on Retail Industry.
Important takeaway:
| Insight from Data | Rationale |
| Retail stands as the prime target | The fact that retailers face 24% of all cyberattacks underscores their vulnerable position in the cyber threat landscape. |
| Elevated stakes in safeguarding customer data | Given the nature of retail transactions, there’s a wealth of customer data at risk, emphasizing the gravity of these attacks. |
| Imperative for advanced cybersecurity measures | The preeminent threat level demands that retailers not only enhance but also constantly update their cybersecurity protocols to stay ahead of attackers. |
Source: Fortinet
Retail Sector Faces 629 Incidents, 241 Breaches in 2022 Alone.
Important takeaway:
| Insight from Data | Rationale |
| Alarmingly high number of security incidents | 629 confirmed incidents in a single year highlight an urgent security concern for the retail industry. |
| Significant portion of incidents lead to breaches | With nearly 40% of these incidents resulting in breaches, it underscores the effectiveness of the threats and the potential magnitude of the consequences. |
| Mandate for reinforced security infrastructure | These figures emphasize the necessity for the retail industry to bolster security measures, both in prevention and rapid response. |
Source: CSO Online
Average Data Breach Price Tag in Retail Hits $3.28 Million in 2022.
Important takeaway:
| Insight from Data | Rationale |
| Staggeringly high financial implications | An average cost of $3.28 million per breach underscores the severe monetary repercussions of security lapses in the retail sector. |
| Necessity for robust investment in cybersecurity | Given the substantial financial stakes, it’s clear that investing in cutting-edge cybersecurity measures can be both a safeguard and a cost-saving strategy. |
| Indication of broader impacts beyond immediate costs | While the direct financial hit is palpable, the figure also hints at potential intangible costs such as brand reputation damage, loss of customer trust, and long-term business disruptions. |
Source: WWD
Sales Dwindle by 5.4% for Cyber-Compromised Retailers.
Important takeaway:
| Insight from Data | Rationale |
| Direct correlation between breaches and sales decline | A 5.4 percent drop in sales growth for compromised companies indicates a tangible negative impact of security breaches on financial performance. |
| Importance of consumer trust in retail | This decline suggests that customer trust is paramount; any breach can deter customers, affecting revenue streams. |
| Urgency for proactive reputation management | Compromised companies must not only address security issues but also engage in restoring consumer confidence to mitigate long-term sales impacts. |
Source: NBER
Of Retail Cyber Attack Victims, 50% Face Extortion; 25% Lose Credentials.
Important takeaway:
| Insight from Data | Rationale |
| Extortion as a dominant cybercriminal strategy | With half of the retail cyberattack victims being extorted, it’s evident that financial gains remain a primary motive for attackers targeting this sector. |
| Significant risk of identity theft and fraud | The harvesting of 25% of victims’ credentials underscores the multi-pronged threat landscape where, beyond immediate losses, there’s a looming danger of future fraud. |
| Imperative for comprehensive security measures | These findings stress the need for retailers to implement a wide array of security solutions, ranging from ransomware protection to advanced credential safeguarding. |
Source: Arctic Wolf
45% Retailers Witness Surge in Cyber Attack Intensity During 2021/22.
Important takeaway:
| Insight from Data | Rationale |
| Escalating cyber threats in the retail sector | With nearly half of retailers noting an uptick in cyberattacks, it’s evident that the sector is facing intensifying digital security challenges. |
| Multi-dimensional growth of cyber risks | The increase not just in volume, but also in severity and scope, suggests that cyber threats are becoming both more frequent and complex. |
| Urgency for fortified and adaptive security measures | The evolving nature of threats mandates retailers to constantly enhance their cybersecurity strategies, ensuring they address the expanding breadth and depth of attacks. |
Source: ISA Cybersecurity
Ransomware Targets Soar: 77% of Retailers Hit in 2021, Up from 44% in 2020.
Important takeaway:
| Insight from Data | Rationale |
| Dramatic surge in ransomware attacks against retailers | The leap from 44% in 2020 to 77% in 2021 demonstrates an aggressive and concerning trajectory for ransomware threats targeting the retail sector. |
| Retail sector’s heightened vulnerability | Such a marked increase indicates that cybercriminals are identifying the retail sector as a lucrative or vulnerable target, intensifying their focus on it. |
| Imperative for rapid and robust countermeasures | The substantial prevalence of ransomware attacks mandates immediate, decisive action, urging retailers to prioritize ransomware defense in their cybersecurity frameworks. |
Source: Trend Micro
Staggering 98% of Retail Incidents in 2022 Motivated by Financial Gain.
Important takeaway:
| Insight from Data | Rationale |
| Overwhelming financial incentive in retail incidents | The staggering 98% statistic underscores that monetary gain remains the predominant driver behind attacks on the retail sector. |
| Retail’s unique vulnerability | Such a high percentage highlights the sector’s intrinsic appeal for cybercriminals, drawn by the potential for direct financial rewards. |
| Imperative for targeted security solutions | Given the evident financial motive, retailers must tailor their security measures to specifically address and deter financially-driven cyber threats. |
Source: Arctic Wolf
Ransomware’s Ripple: 89% Affected Retailers Report Business Revenue Losses.
Important takeaway:
| Insight from Data | Rationale |
| Devastating financial implications for affected retailers | An overwhelming 89% reporting revenue or business losses makes it clear that ransomware isn’t merely an IT problem—it directly impacts the bottom line. |
| Ransomware’s broader operational consequences | Beyond the ransom amount, the data highlights disruptions in business operations, potential downtime, and long-term reputational costs. |
| Urgency for preemptive and holistic defense strategies | Given the widespread and severe repercussions, it is paramount for retailers to invest in comprehensive ransomware mitigation and recovery plans. |
Source: Security Magazine
Post-Hack Boycott: 20% Customers Shun Retailers with Cyber Breaches.
Important takeaway:
| Insight from Data | Rationale |
| Significant customer attrition post-security breach | A sizeable 20% customer exodus following hacks underscores the high stakes of maintaining cybersecurity in upholding customer loyalty. |
| Reputation and trust are paramount in retail | The figures clearly highlight that, for a fifth of consumers, trust—once broken—can lead to decisive shifts in purchasing behavior. |
| Imperative for proactive communication and damage control | Beyond robust security measures, it’s vital for retailers to have clear communication strategies in place to rebuild customer confidence post-incident. |
Source: Virtual Armour
